AI Server Prices Hinge on Memory Costs as Nvidia Rack Prices Rise 17%

* Editor's note: AI PRISM (Personalized Report & Insight Summarizing Media) is an AI-based personalized news recommendation and summary service developed with support from the Korea Press Foundation. It selects and provides six tailored news items by reader type.

1. Nvidia AI Server Prices to Rise 17%

- Key summary: Nvidia will raise rack supply prices for its high-performance AI servers, the Grace Blackwell 300 and the Vera Rubin 200, by up to 17% early next year. The price increase has reportedly been communicated to major customers including Microsoft, Google and Amazon Web Services, and The Information reported that some customers were notified by server manufacturers. The Grace Blackwell 300 previously cost about $3.7 million to $4 million per rack, and the Vera Rubin 200 around $7.8 million, with prices expected to rise above $8 million. Amid a continued shortage of high-bandwidth memory (HBM), which determines server performance, compounded by a shortage of general-purpose chips, Amazon raised the price of its Echo Dot by 60% from $49.99 to $79.99.

2. LS Cable & System Builds European and North American Supply Chains at Once, Riding Second Supercycle

- Key summary: Behind LS Cable & System's decision to build its first busduct plant in Europe lies aggressive AI data center investment by U.S. Big Tech. According to Bloomberg, capital expenditure (CAPEX) by major U.S. Big Tech firms is projected to grow from $394.5 billion (about 547 trillion won) last year to $781.9 billion (about 1,085 trillion won) this year, and to swell to $975.4 billion (about 1,354 trillion won) next year. LS Cable & System, whose only busduct production base is currently its plant in Gumi, North Gyeongsang Province, plans to expand its supply capacity by building a new plant in Poland or Northern Europe. In addition, as the role of LSCUS grows after securing long-term supply contracts worth a total of about 5 trillion won, the company plans to reorganize its North American control tower by strengthening the functions of its Americas regional headquarters.

3. "Korea's Export Growth Strategy Hits Limits, Must Shift to Ecosystem Power"

- Key summary: Concerns have been raised that South Korea's export-centered economic strategy could face limits going forward. Kwon Nam-hoon, president of the Korea Institute for Industrial Economics and Trade, said that major countries are focusing on securing supply chain resilience, and that from an economic security standpoint, maintaining a No. 2 position in areas such as secondary batteries, shipbuilding and renewable energy also carries considerable significance. The Center for Strategic and International Studies (CSIS) in the United States also advised that, with supply chains becoming an arena for geopolitical competition, Korea should flexibly integrate memory, energy and data centers into the global industrial ecosystem. Meanwhile, a government official expressed concern that while surging memory prices are generating extraordinary profits, customers could seek alternatives over the medium to long term.

4. [Dawn] Harvard's Investment Method

- Key summary: It was revealed that Harvard University put $2.2 billion, or more than 3 trillion won, into a single stock, SpaceX, concentrating more than half of its listed-stock investments there. Harvard's endowment grew its total size to $56.9 billion (about 76 trillion won) with an 11% return last year, and invests 70% in private companies through hedge funds, private equity and venture capital. Harvard Management Company (HMC), which manages the fund, has recruited both its chief executive officer (CEO) and chief investment officer (CIO) from outside, a structure focused on the goal of returns. By contrast, POSTECH made 1 trillion won in valuation gains from a 2023 investment in POSCO Future M, but was held back by a rule that taxes money earned by universities if it is not spent within three years. A three-year tax deferral applies to shares disposed of on or after January 1, 2026, but the situation still remains far from that of the United States, where such gains are tax-exempt.

5. Samsung's Stronger Exynos Signals Wider Adoption in Galaxy S27

- Key summary: The next-generation mobile application processor (AP) Exynos 2700, under development by Samsung Electronics (005930), was found in internal performance evaluations to outperform Qualcomm's sixth-generation Snapdragon 8 Elite in CPU, GPU, AI computation and power efficiency. The Exynos 2700 is produced on SF2P, a second-generation 2-nanometer foundry (contract chip manufacturing) process. As Samsung Electronics spent 7.4383 trillion won in the first half alone buying APs from Qualcomm, MediaTek and others, expanding the share of its own chips is seen as a factor in lowering the cost burden of the Mobile eXperience (MX) division. In addition, with 4-nanometer and 5-nanometer foundry prices rising by up to 15%, Kiwoom Securities (039490) forecast that the non-memory division would post a profit of 151 billion won in the third quarter.

6. [Rotary] Act Two of the Auto Industry: Humanoids

- Key summary: The United States has raised its level of technological containment by adding Chinese-made humanoid robots to its list of import restrictions, following telecommunications equipment, drones and connected cars. This shows that a view treating cars, robots and AI as a single physical AI ecosystem has taken hold. Tesla is staking its future on its humanoid Optimus, and Hyundai Motor Group is also accelerating the commercialization of Atlas after acquiring a 100% stake in Boston Dynamics. Hyundai Motor Group plans to build a robot production base in Saemangeum and to deploy Atlas in the production process at its Metaplant in Georgia, in the United States. As supply chains for drive motors, reducers, batteries and power semiconductors overlap, the assessment is that opportunities are opening up for South Korea, which possesses combined capabilities in automobiles, batteries, semiconductors and AI.